The first appellant employed the first respondent as a machine assistant and second respondent as an artisan trimmer. They were dismissed on 12 February 2015 and referred an unfair dismissal dispute to the CCMA. On 7 September 2015, the CCMA issued an arbitration award declaring their dismissal substantively and procedurally unfair and ordered the first appellant to reinstate them retrospectively. The respondents were ordered to report for duty on 25 September 2015, and the appellant was ordered to pay arrear salaries. The appellants did not reinstate the respondents, who then launched an ex parte contempt application, alleging they had reported for work on 25 October 2015 but were refused entry. The Labour Court directed the appellants to show cause why they should not be found in contempt. A dispute of fact arose regarding whether respondents reported for duty and were turned away. At trial, the second respondent testified they reported on 25 September 2015 but were prevented from entering by the operations manager Mr Walker. The first respondent's founding affidavit stated they reported on 25 October 2015, but his testimony changed this to 25 September 2015. The appellants maintained the respondents never reported for work on either date. The Labour Court found the appellants in contempt and ordered reinstatement within 15 days and payment of R25,000 to each respondent.
1. The appeal is upheld with no order as to costs. 2. The order of the Labour Court is set aside and replaced with the following: (a) The application is dismissed with no order as to costs; (b) The respondents are ordered to reinstate the first and second applicants with immediate effect; (c) The respondents are ordered to pay the first and second applicants back-pay from date of service of the application for contempt of court.
The binding legal principles established are: (1) In contempt of court proceedings, the court must be satisfied beyond reasonable doubt that the respondent wilfully refused to comply with the court order or award in question; (2) Material inconsistencies and contradictions in the evidence of applicants in contempt proceedings are crucial to determining whether the required standard of proof has been met and must be given proper weight by the court; (3) Knowledge of a certified award is a prerequisite for a finding of contempt - a party cannot be in wilful contempt of an award they have not received; (4) Fines imposed for contempt of court are punitive measures payable to the state through the registrar of the court, not compensatory payments to be made directly to the applicant in the contempt proceedings; (5) A finding that contempt has not been established does not absolve the party of their underlying obligation to comply with the substantive order or award; (6) Where employees tender their services (even in contempt proceedings), this triggers the employer's obligation to reinstate and to pay back-pay from the date of such tender.
The court made obiter observations regarding the proper procedure and principles applicable to contempt proceedings. The court noted that remedies for contempt of court, being incarceration and/or a fine, are meant to punish the offender for undermining the judicial authority of the court. The court also observed that a fine imposed for contempt is imposed as punishment and is not meant as a solatium (compensation) to the applicant in contempt proceedings. Additionally, the court considered it fair and just not to make a costs order against the respondents in the appeal, despite their lack of success, suggesting that courts have discretion in awarding costs in contempt matters even where the applicant is unsuccessful. The court also implicitly commented on the importance of consistency in pleadings and evidence, particularly regarding material facts such as dates on which services were allegedly tendered.
This case is significant in South African labour law and contempt of court jurisprudence for several reasons: (1) It clarifies the high standard of proof required in contempt proceedings - the court must be satisfied beyond reasonable doubt of wilful non-compliance; (2) It emphasizes that material inconsistencies and contradictions in the evidence of applicants in contempt proceedings cannot be overlooked and must be given proper weight when determining whether the requisite standard of proof has been met; (3) It establishes that knowledge of a certified award is a prerequisite for a finding of contempt - an employer cannot be in wilful contempt of an award they have not received; (4) It clarifies the proper destination of fines imposed for contempt of court - such fines are punitive measures payable to the state through the court registrar and not compensatory payments to the applicant; (5) It demonstrates that even where contempt is not established, the underlying arbitration award remains binding and enforceable; and (6) It shows that tender of services in the contempt application itself can trigger reinstatement obligations and back-pay from that date.